What was the net cash provided by operating activities for Canine Dimensions in 2023?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
| YEAR ENDED DECEMBER 31 | ||
|---|---|---|
| 2023 | 2022 | |
| CASH FLOWS FROM OPERATING ACTIVITIES | ||
| Net Income | 293,881 | 209,365 |
| Adjustments to reconcile net income to net cash provided | ||
| by (used in) operating activities: | ||
| Depreciation Expense | 4,071 | 19,200 |
| NET CASH PROVIDED BY OPERATING ACTIVITIES | 297,952 | 228,565 |
| CASH FLOWS FROM INVESTING ACTIVITIES | ||
| Security Deposit | (9,800) | - |
| Purchase of Automobile | - | (31,923) |
| NET CASH (USED IN) INVESTING ACTIVITIES | (9,800) | (31,923) |
| CASH FLOWS FROM FINANCING ACTIVITIES | ||
| Deferred Revenue - Initial Fee, Current | 3,500 | 3,500 |
| Deferred Revenue - Initial Fee, Long Term | 10,500 | 16,625 |
| Deferred Revenue - Renewal Fee, Current | - | 700 |
| Deferred Revenue - Renewal Fee, Long Term | (700) | 2,712 |
| Contributions from Member | 5,000 | - |
| Distributions to Member | (145,075) | (505,656) |
| NET CASH (USED IN) FINANCING ACTIVITIES | (126,775) | (482,119) |
| NET INCREASE (DECREASE) IN CASH | 161,377 | (285,477) |
| CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 35)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2023 was $297,952. This indicates the cash flow generated from the company's core business operations during that year. In comparison, the net cash provided by operating activities in 2022 was $228,565.
This information is crucial for a prospective franchisee as it provides insight into the financial health and stability of Canine Dimensions. Positive cash flow from operating activities suggests that the company is effectively managing its revenues and expenses, which can be a good indicator of its overall business model and operational efficiency. A consistent increase in net cash provided by operating activities, as seen from 2022 to 2023, may indicate a growing and well-managed franchise system.
However, it is important to consider this figure in conjunction with other financial data provided in the FDD, such as revenue, expenses, and cash flows from investing and financing activities, to get a comprehensive understanding of Canine Dimensions's financial performance. Additionally, prospective franchisees should compare these figures with industry benchmarks and the performance of other franchise systems to assess the relative strength and potential of Canine Dimensions.